FACC Q3 earnings signal strong aerospace growth trajectory 

In its latest financial report, FACC (Ried im Innkreis, Austria) says that it has continued to see strong growth and the associated high demand for passenger aircraft into Q3 2024. The aerospace company’s signal of strong demand stands in stark contrast to companies like Boeing, Spirit AeroSystems and Leonardo, all of which have released information that indicate demand challenges and financial hardships heading into the fourth quarter.

Boeing: “Boeing machinists approve third proposed contract, end strike”

Spirit: “Q3 financial results raise concern of business viability”

Leonardo: “Leonardo Aerostructures can no longer wait on Boeing solution, explores carve-out, alliances”

According to this growth trajectory, FACC was able to increase its revenue by +25.1% to €642.6 million in the first 9 months of 2024 (€513.9 million in 2023). An EBIT of €21.8 million more than quadrupled year on year (€5 million in 2023).

Earnings have been impacted by the sharp rise in location costs in Europe in general and in Austria in particular, as well as by one-off costs for newly launched projects. For this reason, a cost reduction program is currently being implemented, which will lead to a gradual and sustainable increase in profitability from 2025 onward. In addition, a project to reduce the sharp increase in inventories is currently being implemented, which will lead to a significant improvement of operating cash flow in 2025.

FACC is capitalizing on this growth in a couple of ways: developing its own training and focusing on composites. After an 18-month intensive planning and implementation phase, FACC Academy was put into operation in September, designed to train the company’s high number of new and increasingly international employees. Training programs range from language courses to product- and process-specific training and supports the initial qualification of new colleagues and the upskilling of existing crew. In this way FACC hopes to counteract the shortage of skilled workers.

The company is also making progress in the research of thermoplastic composites. These materials will enable efficient and highly automated production, as well as their eventual recyclability. FACC and 13 European partners have begun the COMPASS project to continue these developments.

In a revised outlook for 2024, FACC now expects revenue growth in the 10-20% range. Operationally, management expects a positive consolidated operating result (EBIT margin) of between 3-4%. In Q4 of this year, FACC will increasingly focus on the implementation of cost reduction and efficiency measures and continue to drive its profitable growth in all segments.

For related content, read “FACC records more than 24% revenue growth in Q1 2024.”